With 2018 off to a roaring start — perhaps the best in the S&P 500 seen in over 30 years — analysts seem to be taking a hint and are raising their target prices on their favorite blue chip stocks. 2017 saw the Dow Jones Industrial Average (DJIA) rise 25% and the S&P 500 rise by almost 19.5%, not to mention both these indexes are near all-time highs. Considering these gains, analysts appear to be confident in these target hikes.
While there might be some trepidation about raising targets with the markets at record levels, the recent tax reform bill assuaged any concerns about the markets backing off anytime soon.
Keep in mind that these target hikes are recent and may not yet be accounted for in the consensus analyst price targets.
Amazon.com Inc. (NASDAQ: AMZN) was reiterated as Overweight at JPMorgan, and the firm raised its price target to $1,385 from $1,375. At the same time, Piper Jaffray reiterated an Overweight rating and raised its target to $1,400 from $1,200. Shares of Amazon were last seen at $1,249.19, with a consensus price target of $1,300.64 and a 52-week range of $789.51 to $1,259.33.
Boeing Co. (NYSE: BA) was given an Overweight rating at JPMorgan. The firm also raised the price target to $360 from $325. Shares of Boeing were trading at $320.13, with a 52-week range of $156.67 to $320.41 and a consensus price target of $308.39.
Deere & Co. (NYSE: DE) received multiple target hikes:
- Barclays raised its price target to $171 from $167.
- RBC upgraded it to an Outperform from Sector Perform and raised its target to $190 from $155.
- Wells Fargo raised its price target to $200 from $170.
Shares of Deere were trading at $166.96, with a consensus price target of $159.71 and a 52-week range of $103.99 to $167.28.
Walt Disney Co. (NYSE: DIS) was reiterated as a Buy at Merrill Lynch, and the firm raised its price objective to $144 from $130. That is a street-high target, above the $135 prior high. The brokerage firm went on to comment on Disney:
We are raising our DIS PO to $144 (vs. $130 prev.) on a higher CY18E EPS due to a significantly reduced tax rate. Results will reflect solid Studio and Theme Park trends partially offset by tough CP comps and headwinds at Media Networks. Our F1QE EPS remains $1.67 and our FY18E EPS rises to $7.14 largely on taxes. We reiterate our Buy rating on DIS shares.
Shares of Disney were trading at $110.01, with a consensus price target of $113.49 and a 52-week range of $96.20 to $116.10.
Kohls Corp. (NYSE: KSS) received a few target hikes as well:
- Citigroup raised its price target to $69 from $65.
- Deutsche Bank raised the target to $59 from $56.
- BMO raised its price target from $67 to $82.
Kohl’s traded at $58.92 a share, with a 52-week range of $35.16 to $59.09 and a consensus price target of $52.33.
Target Corp. (NYSE: TGT) also caught a few target hikes following its updated guidance from the 2017 holiday season:
- Deutsche Bank raised target price to $70 from $57.
- Susquehanna upgraded it to Positive from Neutral and raised its target to $84 from $54.
- Telsey Advisory Group raised its price target from $65 to $75.
- UBS raised its price target to $73 from $70.
Target shares traded at $71.10, with a consensus price target of $68.63 and a 52-week range of $48.56 to $72.08.